Asian defence firms can exploit local insecurities 16 Mar 2018 Beijing is cranking up military spending and other regional governments are gunning up as the U.S. security umbrella frays. Manufacturers like Korea Aerospace, Japan’s Mitsubishi Heavy and even China's AVIC are ready to take a bigger bite of a $160 billion regional weapons market.
Elliott picks unusual allies for Italian battle 15 Mar 2018 Paul Singer’s hedge fund wants to oust Telecom Italia’s chairman and other directors backed by top shareholder Vivendi. Nominating well-connected locals improves its chances of success. Still, it’s odd to see the free market champion joining forces with the Italian establishment.
India’s central bank chief rises to occasion 15 Mar 2018 Typically reserved Urjit Patel has robustly defended the RBI after New Delhi blamed it for the $1.8 bln Punjab bank fraud. To preside properly as a regulator, it needs the same power over governance at state banks as private ones. The sooner politicians realise it, the better.
Looser Dodd-Frank rules will stick more tightly 15 Mar 2018 Exactly a decade after Bear Stearns’ rescue, U.S. senators voted to soften parts of the post-crisis bank law. Wall Street’s critics are protesting, but Dodd-Frank needs some fixes. Shedding the most controversial elements will help ensure its pillars have a longer life.
China’s lithium trouble in Chile hints at more 15 Mar 2018 A government agency wants to block Tianqi Lithium's bid for a stake in $13 bln rival SQM, arguing the market is too concentrated. China seldom gets pushback in resources M&A. Beijing can expect more potholes as it tightens its grip on ingredients for electric vehicle batteries.
SEC gives wrong Theranos lesson to Silicon Valley 14 Mar 2018 Elizabeth Holmes’ company raised $700 mln in a “massive” fraud that put patient lives at risk. Yet regulators are letting her escape with a slap on the wrist, and not admit guilt. The SEC says this is an important lesson for startups, but it shows how toothless the agency is.
Trump goes from A-list to CNBC-list with econ pick 14 Mar 2018 Larry Kudlow is a great media communicator, and mostly conventional supply-sider and free trader. But guiding policy for the world's largest economy requires more than pontificating on television. It's another sign of this White House's increasingly shallow talent pool.
UK’s best Russian riposte is hiding in plain sight 14 Mar 2018 Prime Minister Theresa May is expelling diplomats after Moscow ignored her ultimatum to explain its role in a nerve-agent attack in England. That is a fairly ineffective punishment. Better to use existing UK anti-corruption laws to target high-profile Russians with Kremlin links.
Hadas: Businesses need to cut back on half-truths 14 Mar 2018 In the age of digital activism, propaganda’s dire power corrupts politics and divides society. Companies too often join in, pushing agendas with scant regard for the full truth. That’s bad for the world. And if politicians respond by attacking corporations, earnings will suffer.
U.S. pensions struggle to hold line on governance 13 Mar 2018 A bull market is boosting American retirement funds but not corporate standards. Trustees worry the Trump administration may curb their influence over boards while global competition fuels a race to the bottom on voting rights. They may have to run hard just to hold still.
Rexit shrinks White House talent pool, welcome mat 13 Mar 2018 Donald Trump fired Secretary of State Rex Tillerson, shifting officials around to replace him. The former Exxon CEO wasn't in the president's inner circle, but the world has lost a reassuring interlocutor. With outsiders leery of working for Trump such problems could get worse.
ING pay fiasco confirms banking’s utility status 13 Mar 2018 The Dutch lender has withdrawn a 50 percent salary hike for its CEO following a public outcry. Political opprobrium stems from past state support for banks. The inevitable consequence is that bosses become glorified civil servants. Directors and shareholders take a back seat.
Economics trumps politics for Hong Kong voters 12 Mar 2018 Low turnout at Sunday's by-elections showed the city's pro-democracy movement losing traction. An agenda focused on defying Beijing failed to excite a middle class anxious about inequality and housing. Spending plans for the $18 bln budget surplus might revive their interest.
Melrose can afford to hike GKN offer by a tenth 9 Mar 2018 The acquisitive UK engineer must raise its 7 bln pound bid to stand a chance of success. On past deals it has more than doubled its investment in five years. It could pay 10 pct more for GKN and just about clear that hurdle – if growth is robust and performance precise.
U.S. metal tariffs may not be biggest trade worry 8 Mar 2018 The president’s steel and aluminum levies have rattled markets and nudged his economic adviser to quit. A probe into Chinese intellectual-property policy could prove more devastating, though. It commands wide support and could inflict broad trade and investment disruption.
Hassett stacks up as next Trump economics counsel 8 Mar 2018 Among those who might replace Gary Cohn, current CEA head Kevin Hassett stands out as a thoughtful conservative economist, well placed to moderate the president’s protectionist impulses. While he has aired the occasional dubious view, that might actually boost his chances.
Congo digs deep hole with overhaul of mining law 8 Mar 2018 The world's top cobalt producer is right to update rules written after a ruinous war. But the dramatic shift to bring in more taxes also reneges on an earlier promised 10-year "stability clause". Unpredictable swings damage an already battered image, and put investment at risk.
Renault-Nissan will struggle to lose third wheel 7 Mar 2018 The Japanese group may buy France’s 15 pct Renault stake, according a Reuters report the carmakers deny. It’d ease the French group’s heavily discounted share price and a full merger may allow the alliance to cut more costs. But it’s hard to see politicians yielding full control.
Gary Cohn could go from White House to blackboard 7 Mar 2018 President Trump’s departing economic adviser may fancy staying in government. Or perhaps he’ll try to return to finance. But America is awash with politicians and bankers. Becoming a teacher would be a fine display of public service. Cohn now has some valuable lessons to pass on.
Dollar is Trump’s measuring stick, and cudgel 7 Mar 2018 Stocks fell after President Donald Trump’s top economic adviser resigned, but a better gauge of his performance is the dollar. It has dropped nearly 10 pct versus major currencies since he took office. This market no-confidence vote nonetheless serves Trump’s purpose on trade.